Professional Documents
Culture Documents
SUPREME COURT
Manila
THIRD DIVISION
G.R. No. 149422
It was only on February 15, 1999, or more than one year after respondent filed its protest, that the
PARO forwarded to petitioner DAR the said protest together with the records of the compulsory
acquisition proceedings.
On June 21, 1999, respondent received a letter dated May 28, 1999 from petitioner requiring it to
submit certified true copies of the TCTs covering its lots and a Certification from the HLURB attesting
that they are within the residential zone of Dasmarias based on HLURB Resolution No. R-42-A-3
dated February 11, 1981.
Thereafter, respondent learned that on June 24, 1999, the Registry of Deeds of Cavite cancelled one
of its titles, TCT No. T-90476, and in lieu thereof, issued TCT No. T-868471 in the name of the
Republic of the Philippines.
On July 26, 1999, respondent came to know that TCT No. T-868471 was cancelled and in lieu
thereof, TCT No. CLOA-2473 was issued in the name of Angel M. Umali, a farmer-beneficiary
allegedly occupying the land. This prompted respondent to file with the Court of Appeals a petition
for certiorari and prohibition praying that the compulsory acquisition proceedings over its
landholdings be declared void and that TCT No. CLOA-2473 issued to Angel Umali be cancelled.
In its comment, petitioner alleged that respondent failed to exhaust all administrative remedies
before filing its petition. Hence, the same should be dismissed.
On April 26, 2001, the Court of Appeals rendered its Decision, the dispositive portion of which reads:
"WHEREFORE, the petition for certiorari is hereby granted and judgment is hereby rendered
as follows:
a) declaring the compulsory acquisition under Republic Act No. 6657 as null and
void ab initio;
b) prohibiting public respondents PARO and DAR from continuing with the
compulsory acquisition proceedings over TCT No. T-72491; TCT No. T-90474; TCT
No. T-90475; and TCT No. T-90477;
compulsory acquisition proceedings over TCT No. T-72491; TCT No. T-90474; TCT
No. T-90475; and TCT No. T-90477;
c) prohibiting public respondent Register of Deeds of Cavite from cancelling the land
titles of petitioner, i.e., TCT No. T-72491; TCT No. T-90474; TCT No. T-90475; and
TCT No. T-90477 and the transferring, conveying and alienation thereof; and
d) ordering the Register of Deeds of Cavite to restore TCT No. T-90476 (now CLOA
2473) in the name of petitioner.
"SO ORDERED."
Petitioner filed a motion for reconsideration but was denied in the Resolution dated August 2, 2001.
Hence, the instant petition for review on certiorari.
Petitioner ascribes to the Court of Appeals the following errors: (a) in ruling that respondent
corporation did not violate the principle of exhaustion of remedies; (b) in holding that respondent was
deprived of its right to due process; and (c) in concluding that the subject parcels of land are
residential, hence, not covered by R.A. No. 6657.
On the first assigned error, this Court has consistently held that the doctrine of exhaustion of
administrative remedies is a relative one and is flexible depending on the peculiarity and uniqueness
of the factual and circumstantial settings of a case. 3 Among others, it is disregarded where, as in this
case, (a) there are circumstances indicating the urgency of judicial intervention; 4 and (b) the
administrative action is patently illegal and amounts to lack or excess of jurisdiction. 5
Records show that the PARO did not take immediate action on respondent's Protest filed on January
12, 1998. It was only on February 15, 1999, or after more than one year, that it forwarded the same
to petitioner DAR. Since then, what petitioner has done was to require respondent every now and
then to submit copies of supporting documents which were already attached to its Protest. In the
meantime, respondent found that the PARO had caused the cancellation of its title and that a new
one was issued to an alleged farmer-beneficiary.
In Natalia Realty vs. Department of Agrarian Reform,6 we held that the aggrieved landowners were
not supposed to wait until the DAR acted on their letter-protests (after it had sat on them for almost a
year) before resorting to judicial process. Given the official indifference which, under the
circumstances could have continued forever, the landowners had to act to assert and protect their
interests. Thus, their petition for certiorari was allowed even though the DAR had not yet resolved
their protests. In the same vein, respondent here could not be expected to wait for petitioner DAR to
resolve its protest before seeking judicial intervention. Obviously, petitioner might continue to
alienate respondent's lots during the pendency of its protest. Hence, the Court of Appeals did not err
in concluding that on the basis of the circumstances of this case, respondent need not exhaust all
administrative remedies before filing its petition for certiorari and prohibition.
As to the second assigned error, we find that petitioner was deprived of its constitutional right to due
process.
Section 16 of R.A. No. 6657, provides:
"Section 16. Procedures for Acquisition of Private Lands. For purposes of acquisition of
private lands, the following procedures shall be followed:
"(a) After having identified the land, the landowners and the beneficiaries, the DAR shall
send its notice to acquire the land to the owners thereof, by personal delivery or registered
mail, and post the same in a conspicuous place in the municipal building and barangay hall
of the place where the property is located. Said notice shall contain the offer of the DAR to
pay a corresponding value in accordance with the valuation set forth in Sections 17, 18, and
other pertinent provisions hereof.
"x x x"
In Roxas & Co., Inc. vs. Court of Appeals,7 we held:
"For a valid implementation of the CAR program, two notices are required: (1) the Notice of
Coverage and letter of invitation to preliminary conference sent to the landowner, the
representatives of the BARC, LBP, farmer beneficiaries and other interested parties pursuant
to DAR A.O. No. 12, Series of 1989; and (2) theNotice of Acquisition sent to the landowner
under Section 16 of R.A. No. 6657.
"The importance of the first notice, i.e., the Notice of Coverage and the letter of invitation to
the conference, and its actual conduct cannot be understated. They are steps designed to
comply with the requirements of administrative due process. The implementation of the
CARL is an exercise of the State's police power and the power of eminent domain. To the
extent that the CARL prescribes retention limits to the landowners, there is an exercise of
police power for the regulation of private property in accordance with the Constitution
(Association of Small Landowners in the Philippines vs. Secretary of Agrarian Reform, 175
SCRA 343, 373-374 [1989]). But where, to carry out such regulation, the owners are
deprived of lands they own in excess of the maximum area allowed there is also a taking
under the power of eminent domain. The taking contemplated is not a mere limitation of the
use of the land. What is required is the surrender of the title to and physical possession of
the said excess and all beneficial rights accruing to the owner in favor of the farmer
beneficiary (id.). The Bill of Rights provides that "[n]o person shall be deprived of life, liberty
or property without de process of law" (Section 1, Article III of the 1987 Constitution). The
CARL was not intended to take away property without due process of law (Development
Bank of the Philippines vs. Court of Appeals, 262 SCRA 245, 253 [1996]). The exercise of
the power of eminent domain requires that due process be observed in the taking of private
property."
In the instant case, petitioner does not dispute that respondent did not receive the Notice of
Acquisition and Notice of Coverage sent to the latter's old address. Petitioner explained that its
personnel could not effect personal service of those notices upon respondent because it changed its
juridical name from Apex Investment and Financing Corporation to SM Investment Corporation.
While it is true, that personal service could not be made, however, there is no showing that petitioner
caused the service of the notices via registered mail as required by Section 16(a) of R.A. No. 6657.
On this point, petitioner claimed that the notices were sent "not only by registered mail but also by
personal delivery" and that there was actual receipt by respondent as shown by the signature
appearing at the bottom left-hand corner of petitioner's copies of the notices. But petitioner could not
identify the name of respondent's representative who allegedly received the notices. In fact,
petitioner admitted that the signature thereon is illegible. It is thus safe to conclude that respondent
was not notified of the compulsory acquisition proceedings. Clearly, respondent was deprived of its
right to procedural due process. It is elementary that before a person can be deprived of his
property, he should be informed of the claim against him and the theory on which such claim is
premised.8
On the last assigned error, Section 4 of R.A. No. 6657 provides that the Comprehensive Agrarian
Reform Law shall cover, regardless of tenurial arrangement and commodity produced, "all public and
private agricultural lands." Section 3(c) defines "agricultural land," as "land devoted to agricultural
activity as defined in this Act andnot classified as mineral, forest, residential, commercial or industrial
land."
Respondent vehemently insists that its lots had been classified as residential prior to June 15, 1988,
the date of effectivity of R.A. No. 6657. As earlier mentioned, Engineer Gregorio Bermejo, Municipal
Engineer and Deputized Zoning Administrator of Dasmarias, Cavite, certified that respondent's
lands are within the residential zone of Dasmarias, based on the Land Use Plan of that municipality
duly approved by the HLURB in its Resolution No. R-42-A-3 dated February 11, 1981. We observe,
however, that this factual issue was never determined below. Thus, we cannot conclude that
respondent's parcels of land are residential.
WHEREFORE, the challenged Decision dated April 26, 2001 of the Court of Appeals in CA-G.R. SP
No. 55052 is AFFIRMED with MODIFICATION in the sense that we allow the DAR to conduct
appropriate proceedings to determine whether the subject parcels of land are indeed residential and
are thus outside the coverage of R.A. No. 6657.
SO ORDERED.
Puno, (Chairman), Panganiban, Corona, and Carpio-Morales, JJ., concur.